Consolidated Westview Completes Private Placement and Debt Settlement
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CONSOLIDATED WESTVIEW COMPLETES PRIVATE PLACEMENT AND DEBT SETTLEMENT
July 20, 2017 – Vancouver, B.C. – Consolidated Westview Resource Corp. (TSXV: CWS.H) (the “Company”) announces that it has completed the private placement financing and debt settlement previously announced on May 9, 2017.
Pursuant to the private placement (the “Private Placement”), the Company has issued a total of 260,000 common shares at a price of $0.27 per share for gross proceeds of $70,200. The net proceeds of the Private Placement will be used for general corporate and working capital purposes.
The Company has also issued a total of 1,800,832 common shares at a deemed price of $0.27 per share in settlement of outstanding indebtedness totaling $486,225 (the “Debt Settlement”), of which an aggregate of 789,165 common shares were issued to the directors and officers of the Company (the “Insiders”) in settlement of $213,075 of indebtedness.
The Debt Settlement with the Insiders constitutes a “related party transaction” for the purposes of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions, and the Company has relied upon exemptions from the requirement to obtain a formal valuation and seek minority shareholder approval for the Debt Settlement on the basis that the fair market value of the Debt Settlement with the Insiders is less than 25% of the Company’s current market capitalization.
All common shares issued in connection with the Private Placement and Debt Settlement are subject to a four month hold period expiring November 21, 2017.
Subject to Exchange approval, the Company now intends to proceed with the consolidation of its issued and outstanding common shares on a 1.5 to 1.0 basis (the “Consolidation”) as previously announced on May 9, 2017. As a result of the Private Placement and Debt Settlement, there are currently 5,543,023 common shares of the Company issued and outstanding, of which approximately 3,695,348 shares will be outstanding upon completion of the Consolidation.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the proposed Consolidation of the Company’s issued and outstanding share capital. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic and competitive uncertainties; volatility of capital markets, delay or failure to receive regulatory approvals and the additional risks identified in our continuous disclosure filings with Canadian securities regulators at www.sedar.com. There can be no assurance that the share consolidation and debt settlement will proceed on the basis set forth in this news release or at all and that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
ON BEHALF OF CONSOLIDATED WESTVIEW RESOURCE CORP.
“Richard Silas”
Richard Silas, President and Director
FOR FURTHER INFORMATION PLEASE CONTACT:
Richard Silas, President Tel: 778-588-7139 Email: [email protected]